Infratil

What does Marko Bogoievski joining Infratil mean for their investment strategy ? Lance points out they might be looking to unlock some value from Telecom. With Telecom looking to separate its retail business from the infrastructure, there looks to be an opportunity for Infratil.

Another opportunity could be Kordia (formally BCL) which is currently owned by the Government. Kordia operates a national communications network and provides network feeds and broadcast services for the major television and radio networks. The company recorded $264m in revenue and $12m in net surplus for the year ended June 2007. This would look to be a good fit for Infratil with Makro Bogoeivski on board.

Contrarian Investing

Equity Private has a good quote in a recent post about how to think about contrarian investing. 

1. Present the current state of affairs. 
2. Present the inefficiency embedded in the state. 
3. Explain the problem that has thus far prevented a correction of the inefficiency. 
4. Present the new development that now permits the correction.

Equity Private goes on to say:

An amazing amount of clarity can be introduced into investment theses just by framing the problem in this fashion.  This, in my view, is the essence of deep thinking as a prerequisite to action, the foundation of my approach to contrarian investing, and why I love buyouts.

Waterfall Chart

If you ever go to a Limited Partners’ meeting for a Private Equity fund you will see a Waterfall Chart.

They are useful in showing how a company’s value may have increased from initial investment to exit.

You can see the Waterfall Chart entry on Wikipedia along with more examples on Google.